Press release from Marketwire
Parallel Energy Trust Announces Record Nine Month Production and Increases Exit Rate Production Guidance for 2013
Tuesday, October 01, 2013
Parallel Energy Trust Announces Record Nine Month Production and Increases Exit Rate Production Guidance for 201308:00 EDT Tuesday, October 01, 2013
CALGARY, ALBERTA--(Marketwired - Oct. 1, 2013) - Parallel Energy Trust (TSX:PLT.UN) ("Parallel" or the "Trust") today provided a production update and increased its 2013 exit rate production guidance.
During the third quarter of 2013, the Trust's daily production averaged approximately 7,100 boe/day based on field data, which results in a record nine month daily production rate of approximately 7,100 boe/day. Parallel's production in the third quarter was negatively impacted by a severe electrical storm which interrupted power to the Trust's operations, as well as a short-term outage at one of the third-party facilities which processes a significant portion of the Trust's production. Absent these interruptions, Parallel estimates its production for the third quarter would have been consistent with its second quarter production rate of 7,459 boe/day.
Parallel's current production volumes indicate that the Trust's annual corporate decline rate is lower than previously expected. The lower decline rate is mainly due to operational efficiencies and the positive impact of the Trust's workover program which aims to restore lost production by performing cleanouts on Parallel's existing wells.
As a result of the Trust's improved annual decline rate and operational performance, Parallel is increasing its 2013 exit rate production target from 7,100 boe/day to 7,300 boe/day.
"Our team has been working hard to improve our production reliability in 2013 and we are pleased that the positive results of our initiatives are now apparent," said Rick Alexander, Parallel's President and CEO. "During the third quarter we experienced two significant disruptions to our operations; however, we were able to mitigate the impact of these disruptions with the resulting downtime being within our expected annual range of three to five per cent. Our improved production reliability combined with lower than previously expected decline rates will help to lower the capital we require to maintain and grow our production in the future. This will further enhance the sustainability of our distribution. We look forward to providing additional updates in November with the release of our third quarter financial and operating results."
ABOUT PARALLEL ENERGY TRUST
Parallel's objectives are to create stable, consistent returns for investors through the acquisition and development of conventional oil and natural gas reserves and production with unexploited low risk potential in certain regions of the United States, and to pay out a portion of available cash to holders of trust units on a monthly basis. The trust units of Parallel are listed on the Toronto Stock Exchange ("TSX") under the symbol "PLT.UN" and the debentures are listed on the TSX under the symbol "PLT.DB".
Parallel is a "mutual fund trust" under the Income Tax Act (Canada) (the "Tax Act"). The Trust will not be a "SIFT trust" (as defined in the Tax Act), provided that the Trust complies at all times with its investment restriction which precludes the Trust from holding any "non-portfolio property" (as defined in the Tax Act). Further information relating to Parallel is set out in Parallel's annual information form dated March 25, 2013, which may be obtained on the SEDAR website at www.sedar.com under Parallel's profile.
This news release contains forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Parallel, including, without limitation, those listed under "Risk Factors" in Parallel's annual information form dated March 25, 2013 (collectively, "forward-looking information"). Forward-looking information in this news release includes, but is not limited to, Parallel's objectives and status as a mutual fund trust and not a SIFT trust and Parallel's expectations and estimates regarding current and future production rates and drilling results. Parallel cautions investors in Parallel's securities about important factors that could cause Parallel's actual results to differ materially from those projected in any forward-looking statements included in this news release. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and may be forward-looking and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward-looking statements. No assurance can be given that the expectations set out in Parallel's final prospectus or herein will prove to be correct and accordingly, prospective investors should not place undue reliance on these forward-looking statements. These statements speak only as of the date of this press release and Parallel does not assume any obligation to update or revise them to reflect new events or circumstances.
In this news release, Parallel and its subsidiaries are referred to collectively as the "Trust" or "Parallel" for purposes of convenience.
Oil and Gas Measures and Definitions
This press release contains disclosure expressed as "boe" and "boe/day". All oil and natural gas equivalency volumes have been derived using the ratio of six thousand cubic feet of natural gas to one barrel of oil. Equivalency measures may be misleading, particularly if used in isolation. A conversion ratio of six thousand cubic feet of natural gas to one barrel of oil is based on an energy equivalency conversion method primarily.
FOR FURTHER INFORMATION PLEASE CONTACT:
Parallel Energy Trust
Manager, Investor Relations
403-781-7888 or Toll-Free: 1-855-781-7888